MBA 501 Dynamic Strategy and Disruptive Innovation A.docx

MBA 501
Dynamic Strategy and
Disruptive Innovation
Assignment 2 briefing
Assessment 02
• 40%
• 30 slide presentation (+/-10%)
• Part 1: Facebook (20%)
– Strategy Development
– Strategy Implementation
• Part 2: Portfolio Analysis (20%)
• Monday 9th September 23.55 AEST
CONTINUATION OF FACEBOOK CASE
PART A
From assignment 1

• Important to identify 4 stakeholders that
come under each stakeholder category for
Facebook
– Swing
– Defensive
– Offensive
– Hold
Stakeholder Behavior
Analysis
Explanation Coalition Analysis
Stakeholder Categories &
Generic Strategies
• Cooperative potential
• Competitive threat
• Actual behavior
• Stakeholders
• Objectives
• Beliefs
• Commonality of Behavior
• Commonality of Interest
• Swing
(Upside potential &

downside risk)
• Defensive
(Downside risks)
• Offensive
(Upside potential)
• Hold
(Neutral)
Stakeholder Strategy Formulation and Implementation Process
• Change current beliefs about the organisation
• Try to change the stakeholder’s objectives
• Adopt the stakeholder’s position
• Reinforce current beliefs about the organisation
• Maintain existing programs
• Let the stakeholder drive the transaction process
• Formal rule changes
• Change the decision forum
• Change the kinds of decisions that are made
• Monitor existing programs
• Guard against changes in the transaction process
Strategy Implementation
• Resource allocation
• Commitment
• Interaction

• Evaluation
• Restructuring
• Building teams and taskforces
• Sourcing new people
• Creating new business units
• Participation
• Incentives
• Shared values
• Ignore the stakeholder
• Public relations
approach
• Implicit negotiation
• Explicit negotiation
• Implementation control
• Control of strategic
programs
direction
• Control of “what we
stand for”
Covered in Assignment 1
Workshop 04/ Assignment 2 PART 1

1. Strategy Development
• Refer workshop 4 content
• Analyze each generic strategy option for the
identified stakeholder
• Provide recommendations
• Integrate literature and industry sources to
support your arguments
Example Only
InFocus Case: Suppliers (Hold)
• InFocus suppliers are a hold stakeholder: they pose low
cooperative
potential and low competitive threat.
• The key strategies available for managing hold stakeholders
are:
– Monitor existing programs
– Reinforce current beliefs about the organisation
– Guard against changes in the transaction process
be to
reinforce their current beliefs about the organisation. This could
include implementing supplier relationship management

initiatives to
facilitate two-way communication and assure them that InFocus
will
resolve the incident efficiently and effectively.
Analyse
Justify recommendations
1. Strategy Implementation
• Refer workshop 5 content
• Analyze 4 strategy implementation related
area for each stakeholder
• Provide recommendations
• Integrate literature and industry sources to
support your arguments
Analysis
Explanation Coalition Analysis
Stakeholder Categories &
Generic Strategies
• Cooperative potential
• Competitive threat

• Actual behavior
• Stakeholders
• Objectives
• Beliefs
• Commonality of Behavior
• Commonality of Interest
• Swing
(Upside potential &
downside risk)
• Defensive
(Downside risks)
• Offensive
(Upside potential)
• Hold
(Neutral)
Stakeholder Strategy Formulation and Implementation Process
• Change current beliefs about the organisation
• Try to change the stakeholder’s objectives
• Adopt the stakeholder’s position
• Maintain existing programs
• Let the stakeholder drive the transaction process
• Formal rule changes
• Change the decision forum
• Change the kinds of decisions that are made

• Monitor existing programs
• Guard against changes in the transaction process
Strategy Implementation
• Resource allocation
• Commitment
• Interaction
• Evaluation
• Restructuring
• Building teams and taskforces
• Sourcing new people
• Creating new business units
• Participation
• Incentives
• Shared values
• Ignore the stakeholder
• Public relations
approach
• Implicit negotiation
• Explicit negotiation
• Implementation control
programs

direction
• Control of “what we
stand for”
Covered in Assignment 1
IMPORTANT
• IF YOU HAVE NOT IDENTIFIED SWING,
HOLD, DEFENSIVE, AND OFFENSIVE
STAKEHOLDER EACH,
• THEN, PLEASE DO IDENTIFY 4
STAKEHOLDERS AND INDICATE IN THE
STAKEHOLDER ANALYSIS SUMMARY
SLIDES
WEEK 7 CONTENT
PART 2
Based on D&H Food
Group Case study
shared last week

Assessment 02 - components
• Plot business units on a BCG, GE-
McKinsey, and Synergy Matrix
• Recommendations
Portfolio
• Week 07 workshop material
• Plot the five business businesses accordingly
• Summary and analysis
– Rationale behind the analysis
• Recommendations
Portfolio
• Important aspects to consider
– Consolidate the analysis into one place (i.e.
the outcome of all three analysis)
– Provide recommendations
• Research options available for companies
– Example; what should be done when a subsidiary is
marked as a star?
• Provide a clear recommendation

*Integrate scholarly literature
Assessment 02 – Presentation
• Referencing
• DO NOT NEED TO DO RESEARCH INTO
THE INDUSTRIES/ BUSINESSES, etc.
• Research into concepts and theories
associated with
– Portfolio analysis
A2 PRESENTATION
Assessment 02 – Presentation
• A sample slide template is provided
• Limit the amount of text in the slides – capture the
essence
• Need to use the Notes pane to explain slides
– Don’t go beyond 150 words
– Not required for all slides
– Wherever, explanations, theory, and workings have to be
presented

• For example – see below
Assessment 02 – submission
• PDF
• Print to PDF>
Print Layout>
Noted Pages
• See the
demonstration
Important
• Please attend week 7 workshop
• Watch online webinar recordings posted
for the online class
• Contact your facilitator
Late Submission
• All that is required for the assignment was
covered by this week
Late Submission

2 marks per day
20 marks
Read the following documents
• KBS Academic Integrity Policy
• Contract Cheating and Plagiarism related
documents
• https://elearning.kbs.edu.au/course/view.p
hp?id=1481&section=2
Wish you all the best!
• Please contact your workshop facilitator
for further assistance.
Thank You
P a g e 1 | 3
MBA501: Dynamic Strategy and Disruptive Innovation

Assessment 2
Organisation Case Study – D&H Foods
The Delicious Food Group, which commenced operations 50
years ago, changed
its name to Delicious and Healthy Foods (D&H), recently. D&H
is a holding
company with five subsidiaries operating within the food and
beverage industry.
Following is a summary of each business unit.
Munchy Biscuits
The founders of D&H started with Munchy Biscuits 50 years
ago. Since then,
they have become the largest biscuit manufacturer and marketer
in the country.
The company manufactures and markets more than 30 types of
biscuits with 40
brands. The biscuit market is a mature market with limited
growth and fierce
competition. Health concerns, the emergence of newer product
formats, and
niche regional players have contributed to the slowing and
fragmentation of the
industry.
Pure Juice
Pure Juice is a fully integrated fruit juice manufacturer with a
sizable export
market. 90% of the Orange and Apple juice produced by the
company comes

from their own ochards. Close to 50% of Pure Juice products are
certified
Organic and therefore, command a higher price in the market.
Given the
premium image of Pure Juice, the managers are extremely
cautious about
expanding volumes and getting into other types of fruit juices
mainly, due to the
fear of diluting the brand image. The company commands a
smaller market share
in the fresh juice catogary though brand loyalty is very high
among the current
customers. The shareholders of D&H wants the management to
capitalise on
Pure Juice brand strength and expand the operations further. A
shareholder was
heard saying “what is the point in having a good brand if you
can expand or use
that to increase profitability?” The brand promise of pure juice
is “Pure juice from
Pure Juice orchards.”
Funville Chocolates
D&H separated the chocolate business from Munchy Biscuits
almost 30 years
ago. Since then, the company has introduced a number of
innovative products.
However, over the last ten years, the company has lost market
share to the
multinational chocolate companies. The company is known for
its chocolate
coated biscuits, and some are of the view that this range should
be given to
Munchy and Funville should only focus on chocolates.
However, 50% of

P a g e 2 | 3
Funville’s revenue comes from the chocolate coated bicuit
range.
Burgers R Us
D&H acquired Burger House five years ago and rebranded the
company as
Burgers R Us. Currently, the company has more than 60 outlets
spread across
the country and adopts a franchising model. Although Burgers R
Us comes under
the fast food catogary and competes with companies like
McDonald's, Burger
King, and KFC, the company has established a relatively
premium image
compared to other fast food companies. This year, D&H
acquired an up and
coming plant-based meat manufacturing start-up which uses
plant-based
vegetarian alternatives that taste like meat. D&H is following a
similar strategy
adopted by some of the other food companies by entering the
plant-based meat
segment. The new company was merged with Burger R Us in
February. Since
then, the company has released a plant-based meat burger range
that seems to
be doing well. The D&H management wants to move away from
the highly
competitive fast food business to a premium healthy food

segment.
Home Fresh
D&H entered the meal kit business early, and by the time
international
companies like Hello Fresh, entered the country, the company
had already
established a strong foothold in the market. Although the
market is small, every
indicator points to significant growth over the next ten years.
Several large food
companies have offered to purchase Home Fresh from D&H.
Some of the
shareholders are in favour of selling when the company is doing
well. According
to one shareholder, “this business is very different from what
we have done in the
past. I am not sure whether we have the skill-set to take this to
the next level.
However, we have to acknowledge that the current management
of Home Fresh
has done remarkably well. Perhaps with more support, they can
do it.”
The findings of a recent report into the five business and their
respective markets
are presented in the following tables:
Business Findings
Revenue Competitive
Strength

Incoming
Benefits
Outgoing
Benefits
Munchy Biscuits $ 780 Million High High High
Pure Juice $ 35 Million Medium Low Low
Funville $ 30 Million Low High Low
Burgers R Us $ 400 Million Medium High Low
Home Fresh $ 260 Million High Low Low
P a g e 3 | 3
Market Findings
Size Growth Attractiveness
Biscuits $ 1.5 Billion Low Medium
Fruit Juice $ 900 Million High Medium
Chocolate $ 1.0 Billion Low Low
Fast Food $ 8.0 Billion High Medium
Meal Kit $ 500 Million High High
Note: This is a hypothetical case study with hypothetical market
situations. You
are not expected to research the different industries mentioned
in the case study.
The focus should be on researching, analysing, and applying
portfolio

management related theories, concepts, and scholarly views.
Facebook Stakeholders Analysis Report
Name
Institute
EXECUTIVE SUMMARY
Organizations are complex beings that are comprised of
different elements. Every element has specific role and duties
and in overall when all roles are played, an organization
becomes and remains operation. Facebook is one of these
companies and since its establishment in 2004; the company has
remained operational and successful. The success of the
company is awarded to the different stakeholder groups of the
company. Facebook stakeholder groups have a direct impact
that the company shareholders have tried to ensure it is
positive. However, this is only possible with the shareholders
understanding every stakeholder’s likely behavior and motives.
This analysis report shall focus on identifying and analyzing
Facebook Company stakeholders, their behaviors, motives, and
suggest possible coalitions among the company stakeholder
groups.
TABLE OF CONTENT
Introduction to Facebook---------------------------------------------
-------------------------------- 4
Stakeholder view ------------------------------------------------------

--------------------------------- 5
Selected Facebook stakeholders analysis ---------------------------
-------------------------------- 7
Conclusion -------------------------------------------------------------
---------------------------------- 9
References -------------------------------------------------------------
--------------------------------- 10
INTRODUCTION TO FACEBOOK
Facebook Inc. is an American online social networking service
offering company that was established in 2004 by Mark
Zuckerberg and other fellow Harvard University students and
rooms. These other partners include; Eduardo Saverin, Andrew
McCollum, Dustin Moskovitz and Chris Hughes. The company’s
headquarters is located in Menlo Park, California and It is
considered one of the Big Four technology companies along
with Amazon, Apple, and Google. The company is in the
technology services sector and internet services industry. The
idea behind the company’s services was generated from
American Universities face book directories. However, the
founders modernized the idea where they came up with an idea
where technological devices which are internet enabled can be
used to connect people across the globe there by creating a
social network.
The company’s revenues are generated from adverts made
through the social media. It also helps people to communicate
more often through their Facebook accounts where they can
engage in video calls, chats, and also sending of images
(Moreno-Munoz, et al., 2016). The services help the company to
achieve its corporate mission and vision statements. For
instance the company’s current mission is “to give people the
power to build community and bring the world closer together.”
Facebook also has a vision statement is to develop and maintain
a company whose social media services would keep friends and
family connected and express themselves freely as well as

informed of what is going on in the world.
The technology services industry precisely the companies
offering social media services like Facebook does is faced with
a series of challenges. One of the serious challenges is security
where customer accounts are hacked by highly skilled people in
technology area. The major challenge is that clients are made to
feel like the social media networks cannot guarantee them
ample security of their data (Moreno-Munoz, et al., 2016).
Another major challenge is where crimes have been made public
through Facebook social networks something that has placed the
company on the limelight especially with law enforcers as they
are forced to provide customer information. As a result of these
challenges, a recent development has been announced and
implementation started which is the F8 initiative where
application would be developed that would heighten client’s
privacy (Adi Robertson, 2019). The company is also keeping
with industry trends like video chats and calls and personalizing
images using different features in the social media setup
(Puppis, & Just, 2012).
STAKEHOLDER VIEW
Zuckerberg in a You Tube video tagged as “I’m not stepping
down as Facebook chairman” available on
https://www.youtube.com/watch?v=pq1buvnFGnE; claims that
the company has five major important stakeholders. These
stakeholders include; users, advertisers, employees,
government, and communities. According to the company
chairman Zuckerberg, these stakeholders they are the reason
behind the company’s survival and success.
Customers/users: at Facebook, the customers are the major
company stakeholder group and this group has a direct impact
on the company. The more reason is that customers are the
stakeholder group that the company targets to sell its services
and generate revenues. All marketing tactics that the company
uses targets this stakeholder group and this means this is the

group that maintains company operations. At Facebook, this
group has proven to make use of the company services as they
visit the company website and send images and pictures in
millions every minute. They are in charge of the billions of
revenues that the company generates on a monthly basis.
Advertisers: this group of stakeholders plays a major role when
it comes to Facebook’s income levels and abilities. They come
up with effective advertising strategies something that helps in
creating the right brand publicity and awareness (Ji, Li, North,
& Liu, 2017). They also determine the best target audience that
every advert should target as well as set goals to be achieved.
From their role at Facebook different adverts have helped the
company achieve growth and development.
Employees: the Facebook Company has a relatively high
number of employees and this is the group plays an important
role of carrying out all company operational roles and duties
(Haigh, Brubaker, & Whiteside, 2013). At Facebook, the
employees are paid as per every country of operation labor laws
demands and in return, the company expects quality
performance. This is in terms of offering customer service that
meets customer expectations and also come up with better
innovative and creative ideas (Ji, Li, North, & Liu, 2017). This
is the stakeholder group that keeps the company competitive
especially in the social media industry.
Government: at Facebook, the government is the fourth most
important stakeholder. The government plays an important role
of issuing the company with operation licenses and this is the
reason why the company has been able to operate freely in
different countries across the globe (Haigh, Brubaker, &
Whiteside, 2013). The government also sets specific standard
that all companies in the industry must comply with and
protects all companies from unfair competition. This is to mean
that the government directly dictates ethics that the company
must apply and this means that failure to comply would lead to
revocation of operating licenses.
Communities: the members of the community are the last most

important stakeholder. The communities are comprised of
people from different backgrounds, beliefs, and cultures. This
stakeholder group is important as it is the group that Facebook
has been able to market itself and also harbors the consumers
group of stakeholders (Daniel, 2017). Through corporate social
responsibility Facebook extends its help thereby creating a
positive brand image through the communities’ stakeholder
group (Ji, Li, North, & Liu, 2017). As a matter of reality,
Facebook has been able to realize some goals, mission, and
vision by giving back to the society some revenues generated
hence making the company make a positive impact in the
society and also become a reputable company.
SELECTED FACEBOOK STAKEHOLDERS GROUP
ANALYSIS
The four selected Facebook stakeholders include; consumer,
advertisers, employees, and the government. These different
stakeholders groups are different in the sense that they have
different behaviors which is determined by the motive that the
group has towards the company. For instance, the consumer
behaves well and appears happy when the company services are
satisfactorily. This is to mean that the mood and attitude of
consumers is determined by the services that the company is
offering at any given time. The more reason is that their motive
is to access the best possible services from the company.
The employees on their part behave in a manner that supports
company operations all the time. This is through contributed
efforts towards achieving organizational goals and making the
company mission and vision a reality. The more reason is that
the motive of the employees is for the company to grow,
become reputable so that it can become a better and quality
employer. Advertisers on their part behave similarly like
employees because they behave positively to promote the well-
being of the company shareholders and overall company. The
good behavior from advertisers is to enable them achieve their
motive which is to reap benefits from advertisements made
through Facebook social media platform. The government

stakeholder group behavior is determined by corporate
environment as well as the actions of the company. If the
company complies with all set federal rules and policies, the
government behaves positively towards the company. The more
reason is that the main motive of the government is to have as
many legal entities as possible as these are the main revenue
generation sources for the company.
However, to help the Facebook Company achieve its mission
and vision easily, different stakeholders groups can form
coalitions. This would result to sharing of ideas so that the
company operations and services can meet the expectations of
all stakeholder groups. For instance, the employees, advertisers,
and the consumer can form a coalition. Using the coalition, the
employees and advertiser can engage the consumers to get to
understand consumer needs (Bosetti, 2015). This would help the
employees and advertisers to do things that meet clients’
expectations. Also, a coalition between advertisers and
employees can help advertisers learn specific tips from
employees on how to effectively market goods and services
using Facebook social media platform.
According to Moreno-Munoz, et al., (2016); Facebook has been
facing security-related challenges thereby making many to feel
that their lives is in danger due to hackers. To address this
challenge, the company’s employee’s stakeholder group can
form a coalition with the government stakeholder group to
heighten security measures. The government would share views
and opinions on the best and most effective measures that can
be taken to handle cases of insecurity. The more reason is that
the government benefits from taxes paid by Facebook and the
fact that Facebook is a legal company that complies with
government rules and policies. The coalition can hence help the
two parties to continue supporting and benefiting from each
other. Additionally, the employees can form a coalition with the
consumer to identify community needs that the company can
sponsor to make a positive and long lasting impact.
Conclusion

Facebook is a multinational company that offers social media
platform services to clients. The company was established in
2004 and its operations have been a success and also a
challenge by the different stakeholder. For instance, Facebook
has five major stakeholders groups and each group has a
specific way of behavior which is normally dictated by the
motive of the group towards the company. Nevertheless, all
stakeholder groups are important because it is the roles that
they play that supports and maintains company operation.
Moreover, effective services can be realized by formation of
coalitions among stakeholders groups.

MBA 501 Dynamic Strategy and Disruptive Innovation A.docx

Recommended

Recommended

More Related Content

Similar to MBA 501 Dynamic Strategy and Disruptive Innovation A.docx

Similar to MBA 501 Dynamic Strategy and Disruptive Innovation A.docx (20)

More from alfredacavx97

More from alfredacavx97 (20)

Recently uploaded

Recently uploaded (20)

MBA 501 Dynamic Strategy and Disruptive Innovation A.docx